Russian police, in collaboration with the Novosibirsk branch of Rosseti, have conducted large-scale raids resulting in the seizure of over 3,200 cryptocurrency mining rigs from four data centers in Siberia.
The raids targeted four “illegal” data centers operating interconnected mining networks within the city of Novosibirsk. These centers were found to be siphoning off electricity illegally, leading to substantial financial losses for the local power grid.
During the operation, police officers confiscated 3,225 cryptocurrency mining devices and nine power transformers. The seized equipment was found in facilities strategically placed around Novosibirsk, including near a wastewater treatment plant, in a forest on the outskirts of the Leninsky District, near a city landfill on the left bank of the River Ob, and in a private sector area in the Kalininsky District. These locations were equipped with modern power equipment to facilitate the mining operations.
The raids culminated recently, but are part of a broader, ongoing crackdown on illegal crypto mining activities across Siberia and other regions. Prior to this, in February, authorities had uncovered a smaller illegal mining operation involving 100 ASIC miners on the outskirts of Novosibirsk. Another significant bust occurred in late March in the Irkutsk Oblast, where a 217-rig farm was shut down, and a 35-year-old man was charged with power theft.
The illegal mining operations spanned several districts within Novosibirsk, showcasing a wide-reaching network that exploited local energy resources.
With criminal charges pressed against the operators of these mining centers, the police have effectively shut down these facilities, highlighting the ongoing efforts to combat electricity theft linked to cryptocurrency mining. Rosseti estimates that the illegal operations had stolen electricity worth approximately $2.1 million. This incident underscores the challenges and the need for stringent regulations in the cryptocurrency mining industry, especially concerning the unauthorized use of power resources.
